April 04, 2012

Mumbai

Pradip Overseas Limited

Ratings suspended

Total Bank Loan Facilities Rated	Rs.5805.2 Million
Long-Term Rating	Suspended
Short-Term Rating	Suspended

(Refer to Annexure 1 for Facility-wise details)

CRISIL has suspended its ratings on the bank facilities of Pradip Overseas Ltd (POL). The suspension of ratings is on account of non-cooperation by POL with CRISIL’s efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, POL is yet to provide information substantiating its ability to service debt. The suspension reflects CRISIL’s inability to maintain a valid rating in the absence of this information.

About the Company

POL (formerly Chetan Textiles), based in Ahmedabad, processes and manufactures home-linen textiles. It is promoted by Mr. Pradip Karia and his brother, Mr. Chetan Karia. Mr. Pradip Karia has more than 20 years of experience in the textile trading business. The company’s products include cotton and polyester-blended bed sheets, duvet covers, fitted sheets, pillow covers, and curtains. The company currently operates two textile-processing units with a combined installed capacity to process 136.5 Million metres per annum (MMPA) of home linen. In April 2010, the company issued an initial public offering of equity shares for a total consideration of Rs.1.16 billion; the company is now listed on the Bombay Stock Exchange and the National Stock Exchange.

Annexure 1 - Details of various bank facilities

Current facilities			Previous facilities
Facility	Amount (Rs. Million)	Rating	Facility	Amount (Rs. Million)	Rating
Cash Credit	2381.5	Suspended	Cash Credit	2381.5	CRISIL BB/Stable
Foreign Bill Purchase	808.5	Suspended	Foreign Bill Purchase	808.5	CRISIL A4+
Letter of Credit	1650	Suspended	Letter of Credit	1650	CRISIL A4+
Packing Credit	160	Suspended	Packing Credit	160	CRISIL A4+
Proposed Long-Term Bank Loan Facility	32.4	Suspended	Term Loan	805.2*	CRISIL BB/Stable
Term Loan	772.8	Suspended	--	--	--
Total	5805.2	--	Total	5805.2	--

*Includes Rs 32.4 Million as Proposed Term Facility

Media Contacts	Analytical Contacts	CRISIL Rating Desk
Mitu Samar Director, Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1838 E-mail: msamar@crisil.com Tanuja Abhinandan Communications and Brand Management CRISIL Limited Tel: +91-22- 3342 1818 Email: tabhinandan@crisil.com	Gurpreet S Chhatwal Senior Director - CRISIL Ratings Tel: +91-11-4250 5100 Email: gchhatwal@crisil.com Subodh K Rai Senior Director - CRISIL Ratings Tel: +91-11-4250 5100 Email: srai@crisil.com	Tel: +91-22-3342 3047/3342 3064 Email:CRISILratingdesk@crisil.com

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